Berry Plastics Profit DoublesPosted: Updated:
Evansville-based Berry Plastics Group Inc. (NYSE: BERY) is reporting fiscal first quarter net income of $13 million, compared to $6 million during the same period a year earlier. Chief Executive Officer Jon Rich says the results were boosted by improvements in operational productivity, restructuring activities and acquisitions. January 30, 2015
EVANSVILLE, Ind. - Berry Plastics Group, Inc. (NYSE:BERY) today reported results for its first fiscal 2015 quarter, referred to in the following as the December 2014 quarter:
Increased net sales by 7 percent to $1,220 million for the December 2014 quarter compared to $1,140 million in the December 2013 quarter
Recorded net income per diluted share of $0.11 and adjusted net income per diluted share of $0.27 for the December 2014 quarter
Increased Operating EBITDA by 6 percent to $182 million for the December 2014 quarter compared to $172 million in the December 2013 quarter
Generated $100 million of cash flow from operations and adjusted free cash flow of $36 million for the December 2014 quarter
Made a voluntary $100 million principal payment on our term loan in November 2014
"In the December 2014 quarter we reported both record sales and Operating EBITDA for any December ending quarter in the Company’s history. Operating EBITDA improved by $10 million or 6 percent over the same prior year quarter, primarily as a result of improved operational productivity and cost savings from our previously announced restructuring activities, along with contributions and synergies from our recent acquisitions," said Jon Rich, Chairman and CEO of Berry Plastics.
December 2014 Quarter Results
For the December 2014 quarter, the Company’s net sales increased by 7 percent to $1,220 million from $1,140 million in the December 2013 quarter. The year-over-year increase was primarily attributed to net sales from businesses we acquired in the last twelve months and increased selling prices due to higher material costs and non-resin related cost inflation partially offset by soft customer demand.
Capital Structure and Adjusted Free Cash Flow
The ratio of net debt of $3,759 million at the end of the December 2014 quarter to adjusted EBITDA of $828 million for the four quarters ended December 27, 2014, was 4.5x, representing a 0.1x improvement (reduction) in the quarter. The Company’s adjusted free cash flow for the December 2014 quarter was $36 million and $244 million for the four quarters ended December 27, 2014. Reflecting the Company’s commitment to reduce debt and our strong free cash flow in fiscal 2014 we made a voluntary $100 million principal payment on our term loan in November 2014.
Regarding the Company’s outlook, Rich stated, “We will continue to focus on our four key strategic initiatives including our primary goal of reducing our overall debt leverage by 0.5x per year. We are reaffirming our fiscal 2015 adjusted free cash flow guidance of $320 million assuming no impact from resin cost changes. This estimate includes $589 million of cash from operating activities and $230 million of additions to property, plant, and equipment. Although not factored into our guidance, just as raw material price increases have negatively impacted our cash flow from operating activities over the past two years, we expect that the trend of decreasing resin prices, to the extent it continues, should have a favorable impact on cash from operating activities beginning in the March 2015 quarter.”
About Berry Plastics
Berry Plastics Group, Inc. is a leading provider of value-added plastic consumer packaging and engineered materials delivering high-quality customized solutions to our customers. The Company’s world headquarters is located in Evansville, Indiana, with annual net sales of $5 billion in fiscal 2014 and is listed on the New York Stock Exchange under the ticker symbol BERY. For additional information, visit the Company’s website at www.berryplastics.com.
Source: Berry Plastics Group Inc.